The need for Professional Indemnity Insurance in the UK?

[chris9]

Should a sole trader working from home bother with Professional Indemnity Insurance? I understand you need to keep up with the insurance payment for about 15 years after you cease trading. At a cost of about £3000 per year for premiums this seems expensive. I only have assets worth about £40,000 so is there any point? What are the consequences of not taking out the insurance?

 

[jimbo]

In the US I never had PL inurance, but I did have available some very good attorneys. It is a risk to operate like that, but not impossible.

Their advice is to vigorously oppose every suit brought against you. "Be tough" was their advice. Let everyone know that you will oppose every suit, with vigor.

You will soon build a reputation.

I spent very little money on legal defense, but you will worry some. It takes guts.

jimbo


Buy a dictionary, keep it nearby and USE it. Webster's New World Dictionary of American English is recommended, and Webster's Collegiate Dictionary.